In this episode of Talk Property To me, hosts Brad East and Aaron Downie explore the impact of Trump's tariffs on the Australian property market and self-managed super funds (SMSFs).

We begin by discussing Trump's use of tariffs as a negotiation tool, particularly with China and the U.S., and how these policies have led to significant volatility in global markets, including a $71 billion loss in the ASX. While the direct effects on Australia have been limited, we highlight the challenges faced by Australian e-commerce businesses reliant on Chinese goods now subject to steep tariffs.

The conversation shifts to the property market, where we discuss the Reserve Bank of Australia's (RBA) focus on stimulating the economy, which may lead to anticipated interest rate cuts. We explain how these cuts could benefit homeowners and potential buyers by driving property prices up.

We also advocate for the advantages of SMSFs in property investment, comparing potential returns from real estate to traditional industry funds. We outline the steps to set up an SMSF and emphasize the importance of viewing initial costs as an investment in future wealth.

Finally, we touch on the potential effects of tariffs on the Australian dollar and foreign investment, and we tease our next episode, which will cover recent changes in zoning laws that could simplify building approvals.

Join us for this insightful discussion on navigating the intersections of global trade, local property markets, and investment strategies for your financial future.

00:00:00 - Introduction and Overview

Welcome back to Talk Property Toomey, discussing Trump's tariffs, property, and self-managed super fund opportunities.

00:00:23 - Rate Cut Predictions

Exploring the latest predictions on interest rate cuts and their implications for listeners.

00:00:39 - Trump's Tariffs and Economic Impact

Discussion on Trump's use of tariffs as a leverage tool and its effects on the global economy.

00:01:50 - Direct and Indirect Effects on Australia

Analyzing the limited direct impacts on Australia and the indirect effects on trade with China and Japan.

00:03:44 - E-commerce Challenges

Impact of tariffs on Australian e-commerce stores reliant on Chinese goods for exports to the US.

00:05:00 - Market Volatility and Property Investment

The significant capital loss in the ASX and the stability of property as an investment.

00:05:49 - RBA's Shift in Focus

The RBA's change from worrying about inflation to stimulating the economy through potential rate cuts.

00:06:39 - Panic Selling in Stock Markets

Understanding the effects of panic selling on market stability and individual investment strategies.

00:07:43 - Self-Managed Super Funds vs. Industry Funds

Exploring the benefits of self-managed super funds and property investment over traditional industry funds.

00:09:48 - Compounding Growth in Property

The advantages of property investment in self-managed super funds and its long-term growth potential.

00:10:57 - Setting Up a Self-Managed Super Fund

Steps to establish a self-managed super fund and the importance of commitment in the process.

00:12:10 - Cost vs. Opportunity in Investments

Encouraging a focus on long-term wealth creation rather than immediate costs associated with setting up a fund.

00:12:21 - Current Cash Rate and Future Predictions

Discussion on the current cash rate and predictions for future rate cuts by the RBA.

00:13:25 - Impact of Rate Cuts on Home Loans

How potential rate cuts could affect home loan repayments and savings for homeowners.

00:15:15 - Negotiating with Lenders

Advice on keeping banks accountable and negotiating better rates for home loans.

00:15:48 - Foreign Investment and the Australian Dollar

Potential impacts of tariffs on the Australian dollar and implications for foreign investment.

00:16:12 - Upcoming Topics on Zoning Laws

Preview of the next episode discussing changes in zoning laws and building approvals.

ABOUT THE HOSTS

BRAD EAST

Brad East is the Managing Director of Wisebuy Home Loans. Brad is an award-winning mortgage broker and has helped thousands of clients gain finance to purchase properties. Wisebuy Home Loans is the go-to mortgage brokerage for clients wanting out-of-the-box applications approved.

Website → https://wisebuygroup.com.au

LinkedIn → https://www.linkedin.com/in/newcastlemortgagebroker/

Instagram → https://www.instagram.com/bradeast_mortgagebroker/

Facebook → https://www.facebook.com/bradeastofficial

AARON DOWNIE

Joining the podcast in 2024, Aaron Downie is a seasoned property investor and director of Mackenzie Buyers Agency. Aaron's deep understanding of the property market and investment strategies provides listeners with invaluable insights.

Website: https://www.mackenziepropertygroup.com.au/

Linkedin: https://www.linkedin.com/in/aaron-downie-1b2749134/